CPA eyes 2 airlines for inter-island service

The Commonwealth Ports Authority has identified two possible inter-island air service providers in the wake of CPA’s current dispute with Star Marianas Air, Inc. who has announced possible suspension of flights come October should their issues not be resolved.

During a special board meeting last week, CPA board members moved for CPA to look for alternative airlines to provide inter-island air service for the CNMI pursuant to “threats” made by Star Marianas to terminate air service should their issues with CPA remain unresolved.

Star Marianas’ notice of intent to terminate air service come October stems from a letter received from CPA demanding debt payment of over $1.2 million. Star Marianas, for its part, feels CPA’s methodology of collecting fees from Star is not correct pursuant to a previous Airport Use Agreement with CPA.

CPA board chair Joe Ayuyu shared that he has already identified possible inter-island air service providers.

“There have been a couple of individuals and companies that have approached me. We’re in discussions and we’re urging them to please look at the CNMI as a place for them to do business. We will do everything we can legally to assist them in the permitting process. That’s where we are right now. They haven’t really committed to coming in yet but I think they’re doing their homework as well in terms of securing planes and we do have potential,” he said.

When asked to name them, Ayuyu said he was not at liberty, as of press time, to disclose their names but says they are in open conversation with CPA at the moment.

“At this point, I’m not at liberty to disclose the names of these companies as we’re still in the preliminary stages of our conversations. We’re looking at two but I’m trying to reach out to more—possibly from Alaska or Hawaii and other places. The ones we’ve talked to are around Micronesia. There is an airline in Pohnpei that has been serving Kosrae for many years, we’ve reached out to them if they’re interested in expanding. There’s another group that we’re trying to look for seed money for. We’re looking at different possibilities,” he said.

Ultimately, Ayuyu said he is willing and ready to provide interested airlines help, if need be, just to get them to provide this essential air service between the CNMI islands.

“Hopefully these people act quick. They have asked for subsidy but we don’t have the money to subsidize their operations. But I have recommended programs where they can possibly get that funding. There’s a lot of funding sources, it’s just a matter of whether they qualify. As far as the airline out here, we can assist the potential airlines on our end by helping them justify why we need this service right away,” he said.

Board members Steve Mesngon, who raised the request, said it’s imperative that the CNMI identifies another inter-island air service provider.

“Star Marianas has a monopoly and because they don’t have anyone to compete with them, here they are threatening our local citizens by terminating their services. They’re doing this because there is no competition and who is suffering, our people,” he said.